NEW YORK ( TheStreet) -- Griffin Land & Nurseries (Nasdaq: GRIF) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- GRIF has underperformed the S&P 500 Index, declining 11.59% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market, GRIFFIN LAND & NURSERIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.58, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.34 is sturdy.
- The gross profit margin for GRIFFIN LAND & NURSERIES INC is rather high; currently it is at 59.10%. It has increased significantly from the same period last year. Along with this, the net profit margin of 11.30% is above that of the industry average.
- Net operating cash flow has increased to -$1.19 million or 38.90% when compared to the same quarter last year. In addition, GRIFFIN LAND & NURSERIES INC has also vastly surpassed the industry average cash flow growth rate of -754.00%.
-- Written by a member of TheStreet Ratings Staff